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From: John Bissell on 9 Jan 2010 10:55
I donated some appreciated stock to charity. If I use the "Remove Shares"
option on the account, the gain shows up as a capital gain. I don't see an
option that lets me remove selected shares from an account and yet not have
them show as a gain.

John

From: TomYoung on 9 Jan 2010 11:54
On Jan 9, 7:55 am, "John Bissell" <j...(a)jmbissell.com> wrote:
> I donated some appreciated stock to charity. If I use the "Remove Shares"
> option on the account, the gain shows up as a capital gain. I don't see an
> option that lets me remove selected shares from an account and yet not have
> them show as a gain.
>
> John

I have Q2007, too. If I do a Removed action on appreciated stock I'm
not seeing any realized gains on a Capital Gains report. The report
shows gross proceeds equal to cost basis, for a $0 gain.

It sounds like you're doing something more than a simple Removed
action here.

Here's one way to make the accounting work in the sense of showing a
charitable donation equal to the appreciated value of donated stock:

(I'll assume market value of donated stock is $5,000.00 and the
stock's basis is $1,373.68 for an unrealized gain of $3,626.32.)

1)Do a Return of Capital transaction for this stock, entering the
amount of unrealized gain ($3,626.32) as a *negative number* and
specifying that the transfer account is the same account in which the
security is held. Result: the cost basis of the stock is increased to
the market value( $5,000.00) and there's no change in cash in the
account.

2)Do a sale of the stock at market value. Result: No gain or loss on
sale, cash in account increased to $5,000.00, stock is out of account.

3)Do a MiscExp transaction for $5,000.00 with an offset to "Charity."
Result: Cash in the account is reduced by $5,000.00 and an expense of
$5,000.00 to Charity is created.

Of course, the cash flows are entirely fictional but you end up where
you want to be.

Tom Young
From: Zaidy036 on 10 Jan 2010 16:56
On 1/9/2010 11:54 AM, TomYoung wrote:
> On Jan 9, 7:55 am, "John Bissell"<j...(a)jmbissell.com> wrote:
>> I donated some appreciated stock to charity. If I use the "Remove Shares"
>> option on the account, the gain shows up as a capital gain. I don't see an
>> option that lets me remove selected shares from an account and yet not have
>> them show as a gain.
>>
>> John
>
> I have Q2007, too. If I do a Removed action on appreciated stock I'm
> not seeing any realized gains on a Capital Gains report. The report
> shows gross proceeds equal to cost basis, for a $0 gain.
>
> It sounds like you're doing something more than a simple Removed
> action here.
>
> Here's one way to make the accounting work in the sense of showing a
> charitable donation equal to the appreciated value of donated stock:
>
> (I'll assume market value of donated stock is $5,000.00 and the
> stock's basis is $1,373.68 for an unrealized gain of $3,626.32.)
>
> 1)Do a Return of Capital transaction for this stock, entering the
> amount of unrealized gain ($3,626.32) as a *negative number* and
> specifying that the transfer account is the same account in which the
> security is held. Result: the cost basis of the stock is increased to
> the market value( $5,000.00) and there's no change in cash in the
> account.
>
> 2)Do a sale of the stock at market value. Result: No gain or loss on
> sale, cash in account increased to $5,000.00, stock is out of account.
>
> 3)Do a MiscExp transaction for $5,000.00 with an offset to "Charity."
> Result: Cash in the account is reduced by $5,000.00 and an expense of
> $5,000.00 to Charity is created.
>
> Of course, the cash flows are entirely fictional but you end up where
> you want to be.
>
> Tom Young

Asimpler method is to use Share Removal and then in one of your other
accounts (I use a checking a/c) add a Deposit for $0 and split like this:

1. A Misc. Expense Cash Offset equal to the value of the donation.
2. A Donation in the same amount but negative.
NOTE: this is a negative amount since Donations are an Expense

Eric

Eric
From: TomYoung on 10 Jan 2010 17:52
On Jan 10, 1:56 pm, Zaidy036 <ericNOS...(a)bloch.com> wrote:
> On 1/9/2010 11:54 AM, TomYoung wrote:
>
>
>
> > On Jan 9, 7:55 am, "John Bissell"<j...(a)jmbissell.com>  wrote:
> >> I donated some appreciated stock to charity. If I use the "Remove Shares"
> >> option on the account, the gain shows up as a capital gain. I don't see an
> >> option that lets me remove selected shares from an account and yet not have
> >> them show as a gain.
>
> >> John
>
> > I have Q2007, too.  If I do a Removed action on appreciated stock I'm
> > not seeing any realized gains on a Capital Gains report.  The report
> > shows gross proceeds equal to cost basis, for a $0 gain.
>
> > It sounds like you're doing something more than a simple Removed
> > action here.
>
> > Here's one way to make the accounting work in the sense of showing a
> > charitable donation equal to the appreciated value of donated stock:
>
> > (I'll assume market value of donated stock is $5,000.00 and the
> > stock's basis is $1,373.68 for an unrealized gain of $3,626.32.)
>
> > 1)Do a Return of Capital transaction for this stock, entering the
> > amount of unrealized gain ($3,626.32) as a *negative number* and
> > specifying that the transfer account is the same account in which the
> > security is held.  Result: the cost basis of the stock is increased to
> > the market value( $5,000.00) and there's no change in cash in the
> > account.
>
> > 2)Do a sale of the stock at market value.  Result: No gain or loss on
> > sale, cash in account increased to $5,000.00, stock is out of account.
>
> > 3)Do a MiscExp transaction for $5,000.00 with an offset to "Charity."
> > Result: Cash in the account is reduced by $5,000.00 and an expense of
> > $5,000.00 to Charity is created.
>
> > Of course, the cash flows are entirely fictional but you end up where
> > you want to be.
>
> > Tom Young
>
> Asimpler method is to use Share Removal and then in one of your other
> accounts (I use a checking a/c) add a Deposit for $0 and split like this:
>
> 1. A Misc. Expense Cash Offset equal to the value of the donation.
> 2. A Donation in the same amount but negative.
>    NOTE: this is a negative amount since Donations are an Expense
>
> Eric

Yes, that's simpler, but you end up understating your Misc. Expense
line by the amount of the donation.

Tom Young
From: Zaidy036 on 10 Jan 2010 18:25
On 1/10/2010 5:52 PM, TomYoung wrote:
> On Jan 10, 1:56 pm, Zaidy036<ericNOS...(a)bloch.com> wrote:
>> On 1/9/2010 11:54 AM, TomYoung wrote:
>>
>>
>>
>>> On Jan 9, 7:55 am, "John Bissell"<j...(a)jmbissell.com> wrote:
>>>> I donated some appreciated stock to charity. If I use the "Remove Shares"
>>>> option on the account, the gain shows up as a capital gain. I don't see an
>>>> option that lets me remove selected shares from an account and yet not have
>>>> them show as a gain.
>>
>>>> John
>>
>>> I have Q2007, too. If I do a Removed action on appreciated stock I'm
>>> not seeing any realized gains on a Capital Gains report. The report
>>> shows gross proceeds equal to cost basis, for a $0 gain.
>>
>>> It sounds like you're doing something more than a simple Removed
>>> action here.
>>
>>> Here's one way to make the accounting work in the sense of showing a
>>> charitable donation equal to the appreciated value of donated stock:
>>
>>> (I'll assume market value of donated stock is $5,000.00 and the
>>> stock's basis is $1,373.68 for an unrealized gain of $3,626.32.)
>>
>>> 1)Do a Return of Capital transaction for this stock, entering the
>>> amount of unrealized gain ($3,626.32) as a *negative number* and
>>> specifying that the transfer account is the same account in which the
>>> security is held. Result: the cost basis of the stock is increased to
>>> the market value( $5,000.00) and there's no change in cash in the
>>> account.
>>
>>> 2)Do a sale of the stock at market value. Result: No gain or loss on
>>> sale, cash in account increased to $5,000.00, stock is out of account.
>>
>>> 3)Do a MiscExp transaction for $5,000.00 with an offset to "Charity."
>>> Result: Cash in the account is reduced by $5,000.00 and an expense of
>>> $5,000.00 to Charity is created.
>>
>>> Of course, the cash flows are entirely fictional but you end up where
>>> you want to be.
>>
>>> Tom Young
>>
>> Asimpler method is to use Share Removal and then in one of your other
>> accounts (I use a checking a/c) add a Deposit for $0 and split like this:
>>
>> 1. A Misc. Expense Cash Offset equal to the value of the donation.
>> 2. A Donation in the same amount but negative.
>> NOTE: this is a negative amount since Donations are an Expense
>>
>> Eric
>
> Yes, that's simpler, but you end up understating your Misc. Expense
> line by the amount of the donation.
>
> Tom Young
But that is not an item that affects taxes.

You could set up an item specifically for donations off-set

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